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CDT Resort Tx Presentation - Sept 2009 FINAL ATT C1 COMMISSION WORKSHOP CONVENTION DEVELOPMENT TAX RESORT TAX OTHER GENERAL FUND REVENUES September 21, 2009 CONVENTION DEVELOPMENT TAXES 2 CONVENTION DEVELOPMENT TAXES (CDT) CDT receipts are collected by Miami-Dade County Miami Beach receives CDT funds pursuant to an Interlocal Agreement with Miami-Dade County Uses of CDT Funds are restricted by State Statute • Expansion and improvement of the largest public Convention Center in the County • Construction of new convention centers,, coliseums exhibition stadiums • Maintenance of convention centers, coliseums, stadiums, exhibitions • Acquisition/expansion /maintenance of arenas, exhibition halls, and golf courses Miami-Dade County FY 2009/10 CDT Budget - Revenues CDT Projected Revenues 36,586,000$ Shortfall Reserve 22,833,000 Performance Arts Center Repayment 1,500,000 Basketball Properties Dev. Agreement Fees 111,000 Total Revenue 61,030,000$ CONVENTION DEVELOPMENT TAXES (CDT) – REVENUES 3 Miami-Dade County FY 2009/10 CDT Expenditures Debt Service 20,905,000$ City of Miami Beach Interlocal 4,500,000 City of Miami Interlocal 3,000,000 Museum Support* 2,975,000 Cultural Affairs Grants & South Dade Operating Subsidy 1,770,000 Tennis Center at Crandon Park 1,000,000 Performing Arts Center Trust 12,829,000 American Airlines Arena 6,400,000 Arena Management 500,000 Vizcaya 981,000 Reserve for Debt Service & Shortfall Reserve 6,170,000 Total Expenses 61,030,000$ CONVENTION DEVELOPMENT TAXES (CDT) –EXPENDITURES * Includes Miami Art Museum, Miami Science Museum, and Historical Association CONVENTION DEVELOPMENT TAX (CDT)AGREEMENT Pursuant to Interlocal with Miami Dade County, the City receives $4.5 million in CDT funds annually FY 2007/08 ANALYSIS Amount % of Earnings FY 2002/03 28,328,419$ 11,920,005$ 42% 4,500,000$ 15.89% FY 2003/04 33,086,339$ 14,546,348$ 44% 4,500,000$ 13.60% FY 2004/05 38,342,244$ 16,538,330$ 43% 4,500,000$ 11.74% FY 2005/06 42,315,011$ 17,442,896$ 41% 4,500,000$ 10.63% FY 2006/07 45,593,205$ 18,731,737$ 41% 4,500,000$ 9.87% FY 2007/08 47,924,085$ 20,516,635$ 43% 4,500,000$ 9.39% % of Earnings Collected on Miami Beach Countywide Earnings Earnings Remitted to the CityEarnings Collected on Miami Beach Through the CDT agreement, as amended, the City also received: 1996 - $35 million for capital projects - fully appropriated 2001 - $15 million for capital projects - fully appropriated 2003 - $50 million for the Convention Center which became a $55 million allocation from the County GO Bond 4 RESORT TAX RESORT TAX •Allowable uses of the municipal resort tax are related to the promotion of the tourist industry: ƒPublicity, ƒadvertising, ƒnews bureau, ƒpromotional events, ƒconvention bureau activities, ƒcapital improvements ƒmaintenance of all related physical assets; and ƒfor the payment of the reasonable and necessary expenses of collecting, handling and processing of said tax 5 RESORT TAX •The use of the proceeds of the additional one percent (1%) tax are more specifically identified: ƒ50% for payment of a portion of the debt service on the Miami Beach Redevelopment Agency – City Center/Historic Convention Village Bonds ƒ50% split equally into 4 to fund tourism- related Quality of Life Capital projects in North Beach, Middle Beach and South Beach and to fund the arts RESORT TAX BUDGET FY 2008/09 FY 2009/10 2% Resort Tax Transfer to the general fund 21.9$ 22.4 GMCVB 5.6 5.0 VCA 1.5 1.5 Marketing / Super Bowl 0.4 0.2 Debt Service 1.5 1.6 Tax Collection and Processing 1.0 1.2 Contingency 0.4 0.09 Sub-Total 32.3$ 31.9 1% Resort Tax Debt Service 3.5$ 3.5$ Quality of Life Capital and Arts 3.5 3.5 Sub-Total 7.0$ 6.9$ Total 39.3$ 38.8$ Resort Taxes can only be used for tourism-eligible expenses 6 GENERAL FUND ELIGIBLE RESORT TAX USES $22.4 million is used to offset tourism-eligible expenditures in the following areas: •Police •Fire •Ocean Rescue • Memorial Day Weekend • Other Special Events • Code Compliance • Cultural Arts Council • Tourism & Cultural Department • Citywide Accounts • Garden Center • Bass Museum • Colony Theater Net Expenses • Miami Beach Golf Course Net Expenses • Homeless Services GENERAL FUND RESORT TAX USES FY 2002/03 15,031,450$ FY 2003/04 16,318,450$ FY 2004/05 18,928,608$ FY 2005/06 19,571,309$ FY 2006/07 19,571,309$ FY 2007/08 20,696,674$ FY 2008/09 21,865,440$ FY 2009/10 (Proposed) 22,465,440$ Resort Tax Transfer to the General Fund Resort Tax transferred to the General Fund is used to pay for Resort Tax eligible expenses that are paid from the General Fund. Administratively, the goal has been to transfer less than the amount of funds set aside for emergency/contingency reserves 7 FY 2009/10 GENERAL FUND MAJOR REVENUES FY 2009/10 Proposed General Fund Revenues $226,336,026 Fines & Forfeits 1% Interest 2% Charges for Svces. 4% Intergovernmental 4% Licences & Permits 6% Other Taxes 11% Miscellaneous 4%Resort Tax 10% Property Taxes 52% Rents & Leases 2% Other 4% GENERAL FUND MAJOR REVENUES $- $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 Other Resort Tax Miscellaneous Rents & Leases Interest Fines & Forfeits Charges for Svces. Intergovernmental Licenses & Permits Other Taxes Property Taxes 8 FY 2009/10 GENERAL FUND EXPENDITURES Public Safety 58% Parks & Recreation 13% Operations 7% Transfers to Capital 1% Other 5% Administrative Support 9% Econ Dev & Cultural Arts 7% OTHER Citywide Accounts Citywide Accounts- Normandy Shores Operating Contingency TRANSFER TO CAPITAL ADMINISTRATIVE SUPPORT Mayor & Commission City Manager Communications Finance OBPI Human Resources/Labor Relations City Clerk Procurement City Attorney ECONOMIC DEVELOPMENT & CULTURAL DEVELOPMENT Economic Development Building Planning Tourism & Cultural Development OPERATION Code Compliance Community Services Homeless Services Public Works Capital Improvement Projects PARKS & RECREATION PUBLIC SAFETY Fire Police GENERAL FUND EXPENDITURES OTHER Citywide Accounts Citywide Accounts- Normandy Shores Operating Contingency TRANSFER TO CAPITAL ADMINISTRATIVE SUPPORT Mayor & Commission City Manager Communications Finance OBPI Human Resources/Labor Relations City Clerk Procurement City Attorney ECONOMIC DEVELOPMENT & CULTURAL DEVELOPMENT Economic Development Building Planning Tourism & Cultural Development OPERATION Code Compliance Community Services Homeless Services Public Works Capital Improvement Projects PARKS & RECREATION PUBLIC SAFETY Fire Police 0 50000000 100000000 150000000 200000000 250000000 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 Other Transfers to Capital Administrative Support Econ Dev & Cultural Arts Operations Parks & Recreation Public Safety